FCRPD Circular No. 4: Special Policy on Loan Repayment through One Time Exit

Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh.

Finance Company Regulation and Policy Department

Website:www.bb.org.bd

Date: 16 July 2026 01 Shrabon 1433

FSRPD Circular No.-04

Managing Director/Chief Executive Officer All Finance Companies operating in Bangladesh.

Dear Sir,

Special Policy on Loan Recovery/Adjustment through One-Time Exit.

Borrowers in the country's economy may be affected by various uncontrollable reasons. Due to the closure or transformation into loss-making entities of borrowers' businesses, industries, initiatives, or projects due to uncontrollable reasons, the loan recovery activities of finance companies from related investments are also hampered. In this context, as the possibility of loan adjustment through regular processes for willing customers is slim, the necessity of providing the facility of loan recovery/adjustment through a one-time exit has been observed.

2. In the described context, to create opportunities for affected customers to repay loans, as well as to reduce classified loans of finance companies and improve their liquidity situation through loan recovery, special exit facilities can be provided for bad and impaired classified loans up to June 30, 2026, subject to the approval of the Board of Directors and based on the finance company-customer relationship. The following instructions shall be followed when providing this facility:

a) Under the special exit facility, the borrower must repay all liabilities in a single installment; b) Under this facility, the principal loan (original) cannot be waived. However, if necessary, interest on the loan can be waived after verification. If it becomes necessary to relax the conditions for recovering fund costs and provide interest waiver benefits by segregating income categories in essential cases, the opinion of the Head of Internal Control and Compliance (HICC) must be obtained after auditing through the internal audit department of the finance company to ensure its justification; c) If fund diversion or any kind of fraud/irregularity has occurred in the loan disbursement process, such a loan will not be considered for the exit facility; d) Bad or impaired classified loans that have been rescheduled between August 6, 2024, and June 30, 2026, will also be eligible for the special exit facility under this circular; and e) When providing special exit, short-term loans in the agricultural sector and cottage, micro, and small loans in the CMSME sector must be given priority.

3. To inform borrowers about the special exit described in this circular, letters must be sent and other necessary measures taken.

4. The instructions of this circular will remain effective until December 31, 2026.

5. This instruction is issued under the power conferred by Section 49 of the Finance Company Act, 2023, and will be effective immediately.

Yours faithfully,

(Signature) (Abul Kalam Azad) Director (FSRPD) Phone: 9530178.